WASHINGTON – The government on Friday sought to ease the fuel crunch paralyzing the storm-struck Northeast saying the military would buy motor fuel and truck it there and allow foreign tankers from the Gulf of Mexico to deliver oil products.

The Department of Homeland Security waived the Jones Act, a law that normally prohibits foreign-flagged vessels from shipping gasoline, diesel and other petroleum products, from the Gulf of Mexico to Northeastern ports. The waiver, effective immediately, requires shipments to leave the Gulf region by November 13 and arrive in the Northeast within a week.

With power still out at many ports and gasoline stations hit by superstorm Sandy and as petroleum supplies were robust before the storm, it was unclear how much fuel was needed immediately and how quickly it could get to customers.

The Energy Department also announced that it was tapping the Northeast Heating Reserve for the first time, releasing about 48,000 barrels of ultra-low sulfur diesel for the Defense Department to distribute to local and federal responders in New York and New Jersey.

The fuel will be used to supply emergency equipment, generators, buildings, trucks and other vehicles.

The Defense Department will begin drawing down as soon as Saturday from the reserve, created in 2000, which holds about a million barrels of diesel. It expects to give back the fuel within 30 days.

In another move to ease the shortages, the Obama administration also directed the Defense Logistics Agency to purchase up to 380,000 barrels of unleaded gasoline and 317,000 barrels of diesel for distribution to storm-stricken areas. This purchase will be delivered by tanker trucks, the Federal Emergency Management Agency said in a statement.

Earlier in the week the administration also waived clean gasoline rules throughout most of the eastern seaboard as it struggled to take action after the deadly storm.

ONE WAIVER REQUESTED

Homeland Security said it had received only one request from a company, which it did not identify, to waive the Jones Act.

The law, part of the 1920 Merchant Marine Act, was created to support domestic jobs in the shipping industry. It requires goods moved between U.S. ports to be carried by ships built domestically and staffed by U.S. crews.

The American Maritime Partnership (AMP), a domestic maritime industry group, said it was not aware of any cases where U.S. vessels had not been available to transport fuel, but it supported waivers in the aftermath of the massive storm.

“We will not oppose waivers that are necessary to facilitate delivery of petroleum products into the regions affected by Hurricane Sandy,” AMP said in a letter to President Barack Obama and heads of several government departments.

Benchmark New York Harbor gasoline futures dropped 5 cents, or 2 percent, on news of the waivers, which could allow shippers to divert cargoes en route to Europe or Latin America to the depleted Northeast market.

NO URGENT NEED?

Craig Fugate, the head of FEMA, told reporters several government agencies were trying to figure out how many ships were available. He said the Energy Department held a conference call with major suppliers.

“We’re working … on which ships can be potentially diverted to New York,” Fugate said.

Shipping sources said the slow return of power to ports in the New York Harbor had them considering delivering fuel to nearby cities such as Boston.

Energy experts said the waiver might not bring immediate relief to fuel-strapped New York and New Jersey, where two refineries were shut by Sandy. But, in the longer term, shipping alternatives could help ensure steady supply throughout the Northeast.

“There appears to be no urgent need at the moment” for a Jones Act waiver, said Bob McNally, head of Washington-based consulting firm the Rapidan Group. He said shortages so far have been at the retail level rather than the maritime import level.

David Goldwyn, who headed international energy affairs at the U.S. State Department until early 2011, said the waiver could boost the ability to deliver fuel to the East Coast now that tankers that were set to go to Europe or other destinations can dock there without restriction.

“The travel from Gulf Coast to the East Coast is pretty quick,” said Goldwyn, who currently runs Goldwyn Global Strategies, an energy research and strategy company.

Kerry back in Israel for peace push
AMMAN: US Secretary of State John Kerry flew in to Israel on Thursday as he kept up a push to bring Israelis and Palestinians back to peace negotiations amid a growing skepticism over his efforts.

Tale of two New Jersey towns now linked by Sandy
ASBURY PARK, New Jersey – Asbury Park and Bay Head are two towns on opposite ends of the Jersey Shore’s socio-economic spectrum – one with many poor people, the other with professionals in lucrative Wall Street careers. Superstorm Sandy has swept away many of the differences between the two.

Party-list groups fear fraud
A delayed proclamation of the winning party-list groups could result in fraud, the Makabayan coalition in the House of Representatives grouping seven party-list House members warned Thursday.

Nearly two-thirds NY area gasoline stations still shut: AAA
NEW YORK – Nearly two-thirds of all the service stations in New York City and New Jersey remain shut, due mostly to a lack of power following Hurricane Sandy, the AAA said on Friday in data that showed little improvement from a day ago.

SOLDIER KILLED, 14 OTHERS HURT IN MISHAP
BAMBANG, Nueva Vizcaya: An Isabela-based soldier was killed while his 14 colleagues were injured when their military truck collided with a speeding passenger bus in Pasuquin, Ilocos Norte Thursday before dawn.

Housing crisis looms as storm victims battle cold
NEW YORK – A housing crisis loomed in New York City as victims of superstorm Sandy struggled on Sunday without heat in near-freezing temperatures, and officials fretted displaced residents would not be able to vote in Tuesday’s presidential election.